Broadcom reported their second-quarter results for 2024, showing a significant increase in revenue to $12.5 billion, a 43% jump compared to the same quarter in 2023. However, net income decreased by 39% to $2.12 billion, leading to a profit margin of 17%, down from 40% last year due to higher expenses. Earnings per share (EPS) also dropped to USD 4.56 from USD 8.39 in Q2 2023.
Despite the decrease in net income and profit margin, Broadcom’s financial results exceeded analyst expectations, with revenue beating estimates by 4.0% and EPS surpassing expectations by 11%. Looking ahead, the company projects a 14% average annual revenue growth over the next three years, slightly lower than the semiconductor industry’s projected growth of 18% in the US.
The performance of the American semiconductor industry has been strong, with Broadcom’s shares increasing by 23% compared to a week ago. However, investors should be cautious of potential risks associated with investing in Broadcom. The company has identified four warning signs that investors should consider as part of their investment process.
This article from Simply Wall St provides a general overview of Broadcom’s financial results and projections based on historical data and analyst forecasts. It does not constitute financial advice and does not take into account individual objectives or financial situations. The goal is to offer long-term analysis driven by fundamental data, but it may not encompass the latest developments from price-sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned. For any concerns about the content or to provide feedback, readers can contact the editorial team directly at editorial-team@simplywallst.com.
Article Source
https://finance.yahoo.com/news/broadcom-second-quarter-2024-earnings-100731057.html